Exhibit 99.1
PRESS RELEASE
SEACOR SMIT ANNOUNCES FOURTH QUARTER RESULTS
HOUSTON, TEXAS
February 26, 2004
FOR IMMEDIATE RELEASE -- SEACOR SMIT Inc. (NYSE:CKH) announced a net loss for
the fourth quarter ended December 31, 2003 of $1.7 million, or $0.09 per diluted
share, on operating revenues of $101.0 million. For the twelve months ended
December 31, 2003, net earnings were $12.0 million, or $0.63 per diluted share,
on operating revenues of $406.2 million.
For the fourth quarter ended December 31, 2002, net earnings were $1.6 million,
or $0.08 per diluted share, on operating revenues of $99.7 million. For the
twelve months ended December 31, 2002, net earnings were $46.6 million, or $2.28
per diluted share, on operating revenues of $403.2 million.
For the third quarter ended September 30, 2003, net earnings were $2.9 million,
or $0.15 per diluted share, on operating revenues of $103.2 million.
Financial results for the fourth quarter ended December 31, 2003 as compared to
the immediately preceding quarter ended September 30, 2003 were impacted by a
variety of factors highlighted below.
o DECREASED OPERATING REVENUES. Operating revenues of $101.0 million
decreased $2.3 million. Offshore marine services' revenue declined
$6.7 million primarily due to net fleet reductions and lower fleet
utilization. Environmental services' revenue, before the impact of a
fourth quarter acquisition of a business which provides land based and
offshore remediation and other services on the West Coast, declined
$3.7 million primarily due to the completion of a major project begun
in a prior period. These declines were partially offset by (i) a $3.5
million increase in inland river revenues resulting from fleet growth
and higher freight rates and (ii) $4.8 million in additional revenues
earned by the environmental services business acquired during the
fourth quarter.
o INCREASED OPERATING AND ADMINISTRATIVE EXPENSES. Operating and
administrative expenses of $95.0 million increased $9.1 million.
Expenses incurred by the environmental services division increased
$3.5 million primarily due to the business acquired during the fourth
quarter. This increase was only partially offset by the non-recurrence
of expenses associated with the major project that was mostly executed
in prior periods. Offshore marine services' expenses increased $2.5
million due to severance costs related to fleet dispositions and
administrative staff reductions. Expenses for performing inland river
services increased $1.8 million primarily due to fleet growth.
Offshore aviation's expenses increased $0.7 million resulting from the
preparation for the introduction of four new helicopters to be
deployed in the Gulf of Mexico.
o INCREASED INCOME FROM EQUIPMENT SALES. Income from equipment sales of
$9.6 million increased by $7.3 million primarily due to the sale of
offshore vessels during the fourth quarter.
o INCREASED DERIVATIVE TRANSACTION LOSSES. Derivative transaction losses
of $1.5 million increased by $1.1 million primarily due to the
termination of credit swaps related to the Company's 7.2% Senior Notes
and the mark-to-market accounting on commodity futures.
o INCREASED RESULTS FROM OTHER, NET. Other income of $4.5 million
increased $3.8 million primarily due to foreign currency accounting
gains associated with the strengthening of the British pound sterling
against the U.S. dollar, partially offset by lower security sale
gains.
o INCREASED INCOME TAX EXPENSE. The increase in the fourth quarter's
effective tax rate is primarily due to a $1.9 million valuation
allowance provided for foreign tax credits that may expire before
utilization and a $0.5 million tax impact from non-deductible
expenses.
o INCREASED EQUITY LOSSES. Equity losses of $0.1 million, as compared to
the preceding quarter's operating income of $0.9 million, represented
a change of $1.0 million primarily due to lower results realized on
offshore marine and marine telecommunication joint ventures, partially
offset by the non-recurrence of a $1.0 million third quarter charge
against earnings for U.S. income taxes on dividends received from a
foreign joint venture.
The Company's offshore marine fleet declined from 279 vessels at the end of the
prior quarter to 235 at December 31, 2003. During the fourth quarter, the
Company sold 30 vessels with a carrying value of $29.6 million, 1 of which was
leased-back and 1 of which was sold to a joint venture, and took delivery of 2
newly constructed crew vessels. In addition, the Company terminated leases on 3
vessels, transferred one vessel to the environmental services segment, and
removed 14 vessels from service. Additional fleet information is described in
the attached supplementary operational data schedule.
During the fourth quarter, the Company decided to divest of all utility vessels
from its marine fleet. As of December 31, 2003, the carrying value of the
remaining 26 utility vessels was $1.8 million. For the current quarter and full
year the utility boat fleet incurred operating losses of $0.2 million and $1.1
million, respectively, before overhead associated with operating these vessels.
On October 31, 2003, the Company acquired an environmental services business
that provides emergency response, site remediation, industrial and marine
contract cleaning, salvage support, hazardous waste management services, and
environmental equipment and product sales to both the private and public sectors
on the West Coast of the United States. During the fourth quarter, this business
contributed operating revenues of $4.8 million and an operating loss of $0.1
million to the consolidated group.
The Company's inland river hopper barge fleet grew from 735 units at the end of
the prior quarter to 784 units at December 31, 2003 due to the acquisition of 37
new barges, the lease-in of 10 barges, and the taking over management of 2
barges during the current quarter.
The Company's offshore aviation helicopter fleet grew from 36 units at the end
of the prior quarter to 40 units at December 31, 2003 due to the acquisition of
4 helicopters during the current quarter.
The aggregate cost of all offshore vessels, barges and helicopters delivered
during the fourth quarter was $37.8 million.
The Company's future capital commitments to purchase 9 newly constructed
offshore support vessels, 330 newly constructed inland river hopper barges, 24
newly constructed chemical tank barges, and 6 newly constructed helicopters
approximates $164.0 million as of February 25, 2004. Deliveries of the newly
constructed vessels, barges and helicopters are expected over the next ten
months.
During the fourth quarter, the Company acquired a total of 181,676 shares of its
common stock for treasury at an aggregate cost of $7.1 million. As of December
31, 2003, the Company's cash, marketable securities and construction reserve
funds totaled $438.1 million, an increase of $9.8 million as compared to
September 30, 2003. As of December 31, 2003, the Company's long-term debt
totaled $332.2 million, unchanged as compared to September 30, 2003.
SEACOR and its subsidiaries are engaged in the operation of a diversified fleet
of offshore support vessels that service oil and gas exploration and development
activities in the U.S. Gulf of Mexico, the North Sea, West Africa, Asia, Latin
America and other international regions. Other business activities primarily
include environmental services, inland river operations, and offshore aviation
services.
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This release includes "forward-looking statements" as described in the Private
Securities Litigation Reform Act of 1995. Statements herein that describe the
Company's expectations, strategic objectives, business prospects, anticipated
economic performance and financial condition and other similar matters involve
known and unknown risks, uncertainties and other important factors that could
cause the actual results, performance or achievements of results to differ
materially from any future results, performance or achievements discussed or
implied by such forward-looking statements. Such risks, uncertainties and other
important factors include, among others: general economic and business
conditions, the cyclical nature of our business, adequacy of insurance coverage,
currency exchange fluctuations, changes in foreign political, military and
economic conditions, the ongoing need to replace aging vessels, dependence of
spill response revenue on the number and size of spills and upon continuing
government regulation in this area and our ability to comply with such
regulation and other governmental regulation, industry fleet capacity, changes
in foreign and domestic oil and gas exploration and production activity,
competition, regulatory initiatives, customer preferences, marine-related risks,
effects of adverse weather conditions and seasonality on the Company's offshore
aviation business, helicopter related risks, effects of adverse weather and
river conditions and seasonality on inland river operations, the level of grain
export volume, variability in freight rates for inland river barges and various
other matters, many of which are beyond the Company's control and other factors.
The words "estimate," "project," "intend," "believe," "plan" and similar
expressions are intended to identify forward-looking statements. Forward-looking
statements included in this release speak only as of the date of this release
and SEACOR disclaims any obligation or undertaking to provide any updates or
revisions to any forward-looking statement to reflect any change in our
expectations or any change in events, conditions, or circumstances on which the
forward-looking statement is based. The forward-looking statements in this
release should be evaluated together with the many uncertainties that affect our
businesses, particularly those mentioned under "Forward-Looking Statements" in
Item 7 of our Form 10-K and SEACOR's periodic reporting on Form 10-Q and Form
8-K (if any), which we incorporate by reference.
For additional information, contact Randall Blank, Executive Vice President and
Chief Financial Officer, at (281) 899-4800 or (212) 307-6633 or visit SEACOR's
website at www.seacorsmit.com.
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SEACOR SMIT INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT SHARE DATA, UNAUDITED)
Three Months Ended Twelve Months Ended
December 31, December 31,
---------------------------------- ------------------------------
2003 2002 2003 2002
---------------- ---------------- -------------- -------------
Operating Revenues...........................................$ 100,956 $ 99,708 $ 406,209 $ 403,158
---------------- ---------------- -------------- -------------
Costs and Expenses:
Operating expenses......................................... 78,504 67,306 287,290 249,892
Administrative and general................................. 16,538 14,668 57,684 53,265
Depreciation and amortization.............................. 13,751 13,991 55,506 56,244
---------------- ---------------- -------------- -------------
108,793 95,965 400,480 359,401
---------------- ---------------- -------------- -------------
Operating Income (Loss)....................................... (7,837) 3,743 5,729 43,757
---------------- ---------------- -------------- -------------
Other Income (Expense):
Interest on debt........................................... (4,785) (5,764) (19,313) (17,064)
Interest income............................................ 1,565 2,821 7,531 8,833
Debt extinguishments....................................... - - (2,091) (2,338)
Income from equipment sales or retirements, net............ 9,612 3,077 17,522 8,635
Gain from Chiles Merger.................................... - - - 19,719
Gain (loss) from derivative transactions, net.............. (1,541) (2,424) 2,389 (5,043)
Gain from foreign currency transactions, net............... 3,625 827 3,739 6,281
Gain from sale of marketable securities, net............... 743 518 6,595 3,218
Other, net................................................. 106 141 (652) 144
---------------- ---------------- -------------- -------------
9,325 (804) 15,720 22,385
---------------- ---------------- -------------- -------------
Income Before Taxes, Minority Interest and Equity Earnings.... 1,488 2,939 21,449 66,142
Income Tax Expense............................................ 3,067 1,266 10,396 23,034
---------------- ---------------- -------------- -------------
Income (Loss) Before Minority Interest and Equity Earnings ... (1,579) 1,673 11,053 43,108
Minority Interest in Income of Subsidiaries................... (66) (32) (517) (226)
Equity in Earnings (Losses) of 50% or Less Owned Companies.... (85) (3) 1,418 3,705
---------------- ---------------- -------------- -------------
Net Income (Loss)............................................$ (1,730) $ 1,638 $ 11,954 $ 46,587
================ ================ ============== =============
Basic Earnings (Loss) Per Common Share.......................$ (0.09) $ 0.08 $ 0.63 $ 2.33
================ ================ ============== =============
Diluted Earnings (Loss) Per Common Share.....................$ (0.09)(1) $ 0.08(2) $ 0.63 $ 2.28
================ ================ ============== =============
Weighted Average Common Shares:
Basic....................................................... 18,509,438 19,823,095 19,012,899 19,997,625
Diluted..................................................... 18,509,438(1) 20,032,229(2) 19,279,568 21,057,877
- --------------------
(1) Outstanding stock options and restricted stock has been excluded from the
computation of diluted earnings per share in the three month period ended
December 31, 2003 as the effect was antidilutive. In this same period, such
shares were also excluded from the calculation of diluted weighted average
common shares outstanding.
(2) The assumed conversion of the Company's convertible notes into shares of
common stock has been excluded from the computation of diluted earnings per
share in the three month period ended December 31, 2002 as the effect was
antidilutive. In this same period, such shares were also excluded from the
calculation of diluted weighted average common shares outstanding.
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SEACOR SMIT INC. AND SUBSIDIARIES
SUPPLEMENTARY FINANCIAL DATA
(IN THOUSANDS, EXCEPT SHARE DATA, UNAUDITED)
Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31,
STATEMENTS OF OPERATIONS: 2003 2003 2003 2003 2002
---------- ---------- ---------- ---------- ----------
Operating Revenues..............................$ 100,956 $ 103,234 $ 105,159 $ 96,860 $ 99,708
---------- ---------- ---------- ---------- ----------
Cost and Expenses:
Operating expenses........................... 78,504 72,264 69,422 67,100 67,306
Administrative and general................... 16,538 13,676 13,391 14,079 14,668
Depreciation and amortization................ 13,751 13,411 13,708 14,636 13,991
---------- ---------- ---------- ---------- ----------
108,793 99,351 96,521 95,815 95,965
---------- ---------- ---------- ---------- ----------
Operating Income (Loss).......................... (7,837) 3,883 8,638 1,045 3,743
Net Interest Expense............................. (3,220) (3,063) (2,549) (2,950) (2,943)
Debt Extinguishment.............................. - - (966) (1,125) -
Income from Equipment Sales, net................. 9,612 2,349 414 5,147 3,077
Derivative Transactions, net..................... (1,541) (443) 2,624 1,749 (2,424)
Other, net....................................... 4,474 682 1,797 2,729 1,486
---------- ---------- ---------- ---------- ----------
Income Before Taxes, Minority
Interest and Equity Earnings................... 1,488 3,408 9,958 6,595 2,939
Income Tax Expense............................... 3,067 1,334 3,596 2,399 1,266
---------- ---------- ---------- ---------- ----------
Income(Loss) Before Minority Interest and
Equity Earnings................................ (1,579) 2,074 6,362 4,196 1,673
Minority Interest................................ (66) (112) (241) (98) (32)
Equity Earnings (Losses)......................... (85) 935 322 246 (3)
---------- ---------- ---------- ---------- ----------
Net Income (Loss)...............................$ (1,730) $ 2,897 $ 6,443 $ 4,344 $ 1,638
========== ========== ========== ========== ==========
WEIGHTED AVERAGE COMMON SHARES:
Basic.............................................18,509,438 18,629,664 19,155,421 19,775,194 19,823,095
---------- ---------- ---------- ---------- ----------
Diluted...........................................18,509,438(3) 18,785,256 19,315,817 20,362,120 20,032,229(4)
DILUTED EARNINGS PER COMMON SHARE...................$ (0.09)(3) $ 0.15 $ 0.33 $ 0.22 $ 0.08(4)
BALANCE SHEET:
Cash, Marketable Securities and
Construction Reserve Funds....................$ 438,131 $ 428,372 $ 431,796 $ 498,075 $ 525,931
Total Assets..................................... 1,402,611 1,370,630 1,379,700 1,401,710 1,487,107
Total Long-term Debt............................. 332,179 332,213 332,187 343,058 402,118
Stockholders' Equity............................. 770,446 768,530 772,563 789,971 804,951
- --------------------
(3) Outstanding stock options and restricted stock has been excluded from the
computation of diluted earnings per share in the three month period ended
December 31, 2003 as the effect was antidilutive. In this same period, such
shares were also excluded from the calculation of diluted weighted average
common shares outstanding.
(4) The assumed conversion of the Company's convertible notes into shares of
common stock has been excluded from the computation of diluted earnings per
share in the three month period ended December 31, 2002 as the effect was
antidilutive. In this same period, such shares were also excluded from the
calculation of diluted weighted average common shares outstanding.
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SEACOR SMIT INC. AND SUBSIDIARIES
SUPPLEMENTARY OPERATIONAL DATA
(UNAUDITED)
Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31,
2003 2003 2003 2003 2002
-------- -------- -------- -------- --------
MARINE FLEET RATES PER DAY WORKED ($)(5):
Anchor Handling Towing Supply - Domestic........... 22,111 20,095 16,712 17,668 22,196
Anchor Handling Towing Supply - Foreign............ 9,212 9,927 10,593 10,110 11,073
Crew............................................... 3,323 3,257 3,153 3,158 3,148
Geophysical, Freight and Other(6).................. - - - - -
Mini-Supply........................................ 2,992 2,998 3,027 3,102 2,983
Standby Safety..................................... 6,933 6,733 6,559 6,537 6,288
Supply and Towing Supply - Domestic................ 6,082 6,068 6,184 6,815 6,865
Supply and Towing Supply - Foreign................. 7,779 8,077 8,285 8,216 8,535
Utility............................................ 1,752 1,774 1,792 1,767 1,762
MARINE FLEET UTILIZATION (%)(5):
Anchor Handling Towing Supply - Domestic........... 56.2 65.9 66.8 67.9 78.1
Anchor Handling Towing Supply - Foreign............ 72.8 81.9 81.2 88.9 71.4
Crew............................................... 78.5 75.9 79.9 78.9 78.3
Geophysical, Freight and Other(6).................. - - - - -
Mini-Supply........................................ 86.3 91.6 89.4 86.8 86.2
Standby Safety..................................... 90.3 89.9 89.5 81.6 88.5
Supply and Towing Supply - Domestic................ 59.4 77.2 66.1 68.7 89.1
Supply and Towing Supply - Foreign................. 80.5 85.5 90.8 87.9 83.4
Utility............................................ 52.4 58.7 56.7 55.1 58.0
Overall Offshore Marine Fleet................... 75.1 77.5 77.8 76.2 76.8
MARINE FLEET AT PERIOD END(5):
Anchor Handling Towing Supply - Domestic.......... 6 5 5 5 5
Anchor Handling Towing Supply - Foreign........... 20 21 20 21 23
Crew.............................................. 87 90 92 92 96
Geophysical, Freight and Other.................... 4 2 2 2 2
Mini-Supply....................................... 32 32 32 32 33
Standby Safety.................................... 27 26 26 26 26
Supply and Towing Supply - Domestic............... 11 13 13 17 18
Supply and Towing Supply - Foreign................ 48 54 53 52 53
Utility........................................... - 36 40 41 45
-------- --------- --------- --------- --------
Total Offshore Marine Fleet..................... 235 279 283 288 301
======== ========= ========= ========= ========
INLAND BARGE FLEET AT PERIOD END...................... 784 735 559 562 535
HELICOPTER FLEET AT PERIOD END........................ 40 36 36 36 36
HELICOPTER FLIGHT HOURS............................... 5,422 5,131 5,889 5,061 n.a.
- --------------------
(5) Statistics exclude vessels retired from service in the applicable periods -
26 utility vessels at December 31, 2003.
(6) Vessels in this class were out of service during all reported periods.
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SEACOR SMIT INC. AND SUBSIDIARIES
SUPPLEMENTARY OPERATIONAL DATA
(UNAUDITED)
As of
September 30,
As of December 31, 2003 2003
------------------------------------------------------------------------------- ----------
Joint Pooled/
Owned Leased-in Subtotal Ventured Managed Total Total
------------------------------------------------------------------------------- ----------
OFFSHORE MARINE FLEET
ANCHOR HANDLING TOWING SUPPLY:
Domestic............................ 3 2 5 1 - 6 5
Foreign............................. 15 - 15 5 - 20 21
---------- ---------- ---------- ----------- ----------- --------- ----------
18 2 20 6 - 26 26
---------- ---------- ---------- ----------- ----------- --------- ----------
CREW:
Domestic............................ 29 23 52 1 - 53 57
Foreign............................. 22 - 22 12 - 34 33
---------- ---------- ---------- ----------- ----------- --------- ----------
51 23 74 13 - 87 90
---------- ---------- ---------- ----------- ----------- --------- ----------
GEOPHYSICAL, FREIGHT AND OTHER:
Domestic............................ 1 - 1 - - 1 1
Foreign............................. 1 - 1 2 - 3 1
---------- ---------- ---------- ----------- ----------- --------- ----------
2 - 2 2 - 4 2
---------- ---------- ---------- ----------- ----------- --------- ----------
MINI-SUPPLY:
Domestic............................ 23 4 27 - - 27 28
Foreign............................. 3 - 3 2 - 5 4
---------- ---------- ---------- ----------- ----------- --------- ----------
26 4 30 2 - 32 32
---------- ---------- ---------- ----------- ----------- --------- ----------
STANDBY SAFETY:
Domestic............................ - - - - - - -
Foreign............................. 19 - 19 3 5 27 26
---------- ---------- ---------- ----------- ----------- --------- ----------
19 - 19 3 5 27 26
---------- ---------- ---------- ----------- ----------- --------- ----------
SUPPLY AND TOWING SUPPLY:
Domestic............................ 3 5 8 2 1 11 13
Foreign............................. 20 2 22 26 - 48 54
---------- ---------- ---------- ----------- ----------- --------- ----------
23 7 30 28 1 59 67
---------- ---------- ---------- ----------- ----------- --------- ----------
UTILITY:
Domestic............................ - - - - - - 34
Foreign............................. - - - - - - 2
---------- ---------- ---------- ----------- ----------- --------- ----------
- - - - - - 36
---------- ---------- ---------- ----------- ----------- --------- ----------
WORLDWIDE FLEET:
Domestic............................ 59 34 93 4 1 98 138
Foreign............................. 80 2 82 50 5 137 141
---------- ---------- ---------- ----------- ----------- --------- ----------
139 36 175 54 6 235 279
========== ========== ========== =========== =========== ========= ==========
INLAND BARGE FLEET
Domestic............................... 369 176 545 6 233 784 735
========== ========== ========== =========== =========== ========= ==========
HELICOPTER FLEET
Domestic.......................... 23 16 39 - 1 40 36
========== ========== ========== =========== =========== ========= ==========
7